Will tax cuts lure business in Exeter?

Tuesday

Oct 29, 2013 at 2:00 AM

EXETER — Selectmen seem to be moving toward approving a proposal to adopt RSA 79-E, The Community Revitalization Tax Relief Incentive, an economic development tool that would allow town officials to offer developers of existing properties a temporary tax break to entice them to renovate the property.

Jeff McMenemy

EXETER — Selectmen seem to be moving toward approving a proposal to adopt RSA 79-E, The Community Revitalization Tax Relief Incentive, an economic development tool that would allow town officials to offer developers of existing properties a temporary tax break to entice them to renovate the property.

Selectmen delayed any vote on adopting 79-E at their meeting last week, so they could study the 11 proposed districts forwarded to them by the town's Economic Development Commission.

But several selectmen spoke in support of the plan.

"It gives us a tool to negotiate with a developer to induce them to do more," Selectman Dan Chartrand said.

He added that the initiative is aimed at "increasing the commercial tax base in town."

RSA 79-E gives town officials the authority to have a designated property taxed at its value before a developer or property owner starts to make improvements to the property.

The reduced tax level lasts for a period up to five years under RSA 79-E, which many town officials believe is long enough to convince developers to renovate or rehabilitate existing properties.

Once the period is over, the property is then taxed at its full value, Town Manager Russ Dean said.

Dean described 79-E as "an economic development tool for the community."

He pointed out Newmarket used it successfully to reach a deal with local developer Eric Chinburg to redevelop the Newmarket Mills, which many officials in Newmarket have credited with helping to revitalize the downtown.

In addition, the value of the mills has increased substantially, which in the long run will mean more tax revenue for Newmarket, Dean said.

The pre-construction value of Newmarket Mills was $1.8 million and its value now is $2.8 million, according to a PowerPoint presentation distributed by Dean.

Selectman Julie Gilman said 79-E is based on "delayed gratification," meaning town officials accept lower tax revenue in the short term to enjoy higher tax revenues and renovated buildings in the long-term.

"It's better to delay your gratification than to get no gratification," Chartrand said.

Selectmen Chairman Don Clement noted that the measure applies only to existing buildings, and not to new structures.

He said the board will discuss the recommended districts at its Nov. 4 meeting.

The proposed districts, according to the handout, are:

Central downtown — about 65 structures and more than 130 businesses in the downtown core; Waterfront Commercial — about 25 structures and more than 80 businesses — including restaurants and offices — located on the Exeter River; Lincoln — about 70 structures and more than 20 businesses in the Lincoln Street area near the train station; Professional/Technology Park — about five structure and more than five businesses in the Holland Way area, including Exeter Corporate Park; Two Portsmouth Avenue districts — about 80 structures and more than 85 businesses; Neighborhood Professional — about 35 structures and more than 55 businesses in the Hampton Road area; Neighborhood Professional — about eight structures and eight businesses along Kingston Road; Epping Road — about 40 structures and more than 35 businesses; Healthcare — about 10 structures, including the Exeter Hospital and Corporation/Technology Park — about five structures, including Osram Sylvania Inc.

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